Google has saved $3.1bn in taxes since 2007 by shuttling its foreign profits through Ireland and the Netherlands, then on to a haven in Bermuda, according to the company's regulatory filings.
As reported by Bloomberg Businessweek, Google uses techniques known as "Double Irish" and "Dutch Sandwich" to lower its foreign tax rate …

A Mug!

FYI

FYI

@streaky » The Irish are bankrupt because they didn't regulate their banks and then poured their life savings into the gutter. The Irish department of finance showed the financial acumen of a 4-year-old in a sweetshop.

re: streaky

The Irish gov

And meanwhile the Irish gov is garnishing 6% on top of tax from every working taxpayer in Ireland. Oh, and increasing tax to 42% next year. Oh, and taking money from the allowances that we pay PRSI for. Oh, and..

The list goes on. It's funny, like watching a 2yr old trying to balance a checkbook for a multibillionaire. At least it would be funny if they weren't fecking our economy up.

Funny thought. Since they're garnishing an average €100 for the million or so working people in the country, several "corner shop" franchises have reported losing income. There's almost a direct correlation to the money they're stealing from the taxpayer to the amount of reported profit loss - and subsequent unemployment - which leads to higher taxes and more levies - which leads to more of these firms closing out - etc.

definitely

how about...

And probably very rich too

Those who can help save millions, even billions, through 'legalised scams', no doubt get their slice from the pie and have very comfortable lives.

As always, the rich get richer, the poor stay poor. While it partly is jealousy, there is real resentment that while we have to pay full rates of tax and duties, may go to prison if we don't, corporates will sneak far more than we could ever cheat on through the system and get applauded and patted on the back for having done so.

While the issue is between legal and illegal, the real moral question is how can we allow it to be legal? It makes a mockery of the argument that taxes due must be paid and then let things like this go on.

As citizens of other countries...

... we thank you for gifting Google the ability to not pay lots of tax from our countries so you can have a little of it.

When you think about tax evasion/avoidance, think of the following maxim. There are only two people in the world: you and everyone else. When everyone else doesn't pay their fair share you have to pay more. People who use legal loopholes to make you and me pay more tax should not be applauded, but castigated.

Not so

Tax avoidance is using legal loopholes to pay less tax. Most of these loopholes are known by the govt. Therefore they have already been found out, but what they are doing is perfectly legal.

Tax evasion is, basically, just not paying the taxes you owe. This is NOT legal.

I am not saying it is right, moral or just. I am saying there is a distinct difference. If the govt wants to, they can introduce legislation to close the loophole. They (effectively) endorse tax avoidance (glad I proof read this, I initially wrote 'evasion' here) by not closing the loopholes.

Many people avoid tax by legal means, for example setting up a limited company, taking minimum wage for them and their spouse, and then taking the rest in dividends avoiding national insurance and higher rate income tax. If you found a way to pay less tax on your wage, would you not do so?

This is a tricky line to draw though

As a company, isn't it behoven to shareholders to maximise profits? So wouldn't NOT using advantageous tax regimes go against this obligation?

Likewise countries are free to set their own taxation rate and laws. It's a fine balance between getting fair revenues from individuals and companies, and also not being too strict so as to drive the larger ones elsewhere. As someone earlier posted, better a smaller slice of a bigger pie...

a tit is required

Governments are going to have to ...

just start charging companies for the taxes that they are generated in that country, irregardless of how the money is routed afterward. The way the economy is going my taxes are going up and my pay will, if I'm lucky, stay the same. Any corporation that can boast huge profits had better start paying the appropriate taxes to the appropriate government or they'll find they are on many peoples will not use/buy list. We really need to get after our elected representatives about tax loopholes like these.

Phase one is complete....

@Dax Farrer

Tax avoidance is doing it legally. Tax evasion is doing it illegally. If governments make daft laws that explicitly allow for loopholes in where the taxation goes, they can expect to get reamed for it.

as usual

Do No Evil

Yeah, right.

Face facts, Google, you are just as "evil" as every other big corporation out there, and your tax avoidance schemes are just yet another piece of your corporate evil.

It's time google admitted they are evil, and it's time all the fawning drooling Google-fans finally realised that the object of their worship isn't a kindly benevolent lone crusader in a sea of evil, but just another "evil" greedy corporation; a corporation which is getting away with it through those supporters' own gullability.

No corporation tax in the UK

Being an "Irish" company, Google pays no taxes on revenues generated from the sale of advertising by UK companies, to UK consumers on searches performed within the UK. The UK represents 12% of all of Google's revenues according to the last earnings release. This is perfectly legal.

The Americans have particular reason to be upset at this arrangement as Brin & Page's research which gave rise to the technology behind Google was funded by the US taxpayer bankrolled National Science Foundation.